Investor Updates: Tiger Global leads $12m seed extension in Zambia’s Union54
2 min Read April 18, 2022 at 8:38 PM UTC
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Tiger Global leads $12m seed extension in Zambia’s Union54
Highlights
- Zambian card issuing fintech Union54 has raised $12 million in a seed extension round led by Tiger Global six months after raising its seed round of $3 million, also led by Tiger Global.
- The startup’s API allows African software companies to issue and manage their debit cards without needing a bank or third-party processor.
- Since its launch in October and participation in Y Combinator’s summer batch 2021, Union54 has issued slightly over 500,000 virtual debit cards to its customers and claims to have processed volumes in millions of dollars.
Source: TechCrunch
Our Takeaway
Issuing debit cards is traditionally very expensive, slow, and inflexible, which makes the process out of the reach of most small companies. With the emergence of card-issuing API fintech startups, however, smaller businesses and startups have relatively easy access to issuing cards for their customers. More so, card-issuing API fintech players in Africa are increasingly attracting the attention of investors and their venture capital dollars.
Kenyan e-commerce startup Elloe raises $1m pre-seed
Highlights
- Kenya’s Elloe, a conversational e-commerce startup, has raised $1 million in pre-seed capital as it bids to expand across emerging markets.
- Founded by Owen Sakawa, Elloe is an AI-powered, conversational commerce platform that allows SMEs to buy and sell products online across any messaging platform.
- The funding round is led by the Philippines-based Mad Ventures and will help Elloe expand across Kenya and other emerging markets.
Source: Disrupt Africa
Our Takeaway
In Africa, e-commerce is gradually evolving to become social selling. Across the continent, startups are springing up with different e-commerce business models built around social networking and messaging sites like Facebook and WhatsApp that consumers already use. Facebook and Instagram are used for online shopping more than e-commerce marketplaces by Africans, per a 2019 GeoPoll survey. This emerging social commerce sub-sector is set to witness exponential growth in the coming years as more startups emerge and consumers make purchases via social media platforms.
Morocco’s Nessiam secures $306k investment
Highlights
- Morocco-based lingerie e-commerce site Nessiam has secured a $306,000 investment from CDG Invest, the CDG Group’s investment arm, as part of its 212 Founders program.
- Founded in 2021 by Mohammed Damiri and Hamza Aouadi, Nessiam offers a variety of women’s underwear on its website.
- The investment will help Nessiam in its plans to become a benchmark brand in the Middle East and North Africa (MENA) region and establish other product lines such as swimwear and accessories for the forthcoming summer season.
Source: Wamda
Our Takeaway
As the e-commerce industry in the MENA region grows, Nessiam’s market opportunity is substantial. In 2017, the market was worth $8.4 billion, with an annual growth of 25% since 2014, and is predicted to reach $28.5 billion by the end of this year. With the accelerated adoption of e-commerce induced by the COVID-19 pandemic, these figures are bound to have increased substantially.
This material has been presented for informational and educational purposes only. The views expressed in the articles above are generalized and may not be appropriate for all investors. The information contained in this article should not be construed as, and may not be used in connection with, an offer to sell, or a solicitation of an offer to buy or hold, an interest in any security or investment product. There is no guarantee that past performance will recur or result in a positive outcome. Carefully consider your financial situation, including investment objective, time horizon, risk tolerance, and fees prior to making any investment decisions. No level of diversification or asset allocation can ensure profits or guarantee against losses. Articles do not reflect the views of DABA ADVISORS LLC and do not provide investment advice to Daba’s clients. Daba is not engaged in rendering tax, legal or accounting advice. Please consult a qualified professional for this type of service.
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